Horngren's Financial & Managerial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780133851267
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 1, Problem 1.42AP
Preparing financial statements
Presented here are the accounts of Golden City Barbershop for the year ended December 31, 2016.
Land | $ 5,000 |
Notes Payable | 37,000 |
Property Tax Expense | 2,700 |
Dividends | 32,000 |
Rent Expense | 11,000 |
Salaries Expense | 61,000 |
Salaries Payable | 900 |
Service Revenue | 195,000 |
Office Supplies | 9,000 |
49,000 | |
Common Stock | $ 25,000 |
Accounts Payable | 17,000 |
900 | |
Advertising Expense | 13,000 |
Building | 157,000 |
Cash | 3,800 |
Equipment | 19,000 |
Insurance Expense | 2,500 |
Interest Expense | 7,000 |
Requirements
- 1. Prepare Golden City Barbershop’s income statement.
- 2. Prepare the statement of retained earnings.
- 3. Prepare the
balance sheet .
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Consider the following financial data for Nguyen Industries:
Statement of Financial Position as of December 31, 2018
Cash
$
232,500
Accounts payable
$
86,500
Accts. receivable
357,500
Short-term bank note
254,000
Inventories
150,500
Accrued wages & taxes
80,000
Total current assets
$
740,500
Total current liabilities
$
420,500
Long-term debt
566,000
Net fixed assets
774,500
Common equity
528,500
Total assets
$
1,515,000
Total liab. & equity
$
1,515,000
Profit & Loss Statement for 2018
Industry Average Ratios
Net sales
$
1,894,000
Current ratio
1.4×
Cost of goods sold
1,382,500
Quick ratio
1.0×
Gross profit
$
511,500
Days sales outstanding
63 days
Operating expenses
373,000
Inventory turnover
9.5×
EBIT
$
138,500
Total asset turnover
1.5×
Interest expense
64,000
Net…
Consider the following financial data for Terry Enterprises:
Balance Sheet as of December 31, 2018
Cash
$
86,000
Accounts payable
$
15,500
Accts. receivable
91,500
Notes payable
93,500
Inventories
65,500
Accruals
19,500
Total current assets
$
243,000
Total current liabilities
$
128,500
Long-term debt
162,500
Net plant & equip.
419,500
Common equity
371,500
Total assets
$
662,500
Total liab. & equity
$
662,500
Statement of Earnings for 2018
Industry Average Ratios
Net sales
$
642,500
Current ratio
2.2×
Cost of goods sold
482,000
Quick ratio
1.7×
Gross profit
$
160,500
Days sales outstanding
44 days
Operating expenses
119,500
Inventory turnover
6.7×
EBIT
$
41,000
Total asset turnover
0.6×
Interest expense
14,500
Net profit margin
7.2%
Pre-tax earnings
$
26,500…
Consider this balance sheet:
Green Valley Nursing Home, Inc.
Balance Sheet
December 31, 2015
Current Liabilities:
Accounts payable
Accrued expenses
Notes payable
Total current liabilities
Assets
Long-term debt
Current Assets:
Cash
Short-term investments
Net patient accounts receivable
Supplies
Total current assets
Property and equipment
$ 105,737
Total liabilities
Shareholders' Equity:
200,000
215,600
Common stock, $10 par value
Retained earnings
87,655
$ 608,992
Less accumulated depreciation
$2,250,000
356,000
Net property and equipment
Total assets
$1,894,000
$2,502,992
Liabilities and Shareholders'
Equity
Total shareholders' equity
Total liabilities and shareholders'
equity
$
72,250
192,900
180,000
EXHIBIT 4.1
Sunnyvale
Clinic:
Balance Sheets
December 31,
2015 and 2014
$ 445,150
1,700,000
$2,145,150
$ 100,000
(in thousands)
257,842
$ 357,842
$2,502,992
a. How does this balance sheet differ from the ones presented in
Exhibit 4.1 and Problem 4.5?
b. What is Green Valley's net working…
Chapter 1 Solutions
Horngren's Financial & Managerial Accounting, Student Value Edition (5th Edition)
Ch. 1 - Prob. 1QCCh. 1 - Prob. 2QCCh. 1 - Prob. 3QCCh. 1 - Prob. 4QCCh. 1 - Prob. 5QCCh. 1 - Which of the following requires accounting...Ch. 1 - At the end of a recent year, Global Cleaning...Ch. 1 - Consider the overall effects on Global Cleaning...Ch. 1 - Assume that Global Cleaning Service performed...Ch. 1 - The balance sheet reports the a. financial...
Ch. 1 - Assume Global Cleaning Service had net income of...Ch. 1 - What is accounting?Ch. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Which concept states that accounting information...Ch. 1 - Financial statements in the United States are...Ch. 1 - Prob. 12RQCh. 1 - Prob. 13RQCh. 1 - Prob. 14RQCh. 1 - Prob. 15RQCh. 1 - Prob. 16RQCh. 1 - List the four financial statements. Briefly...Ch. 1 - What is the calculation for return on assets...Ch. 1 - Identifying users of accounting information For...Ch. 1 - Prob. 1.2SECh. 1 - Prob. 1.3SECh. 1 - Prob. 1.4SECh. 1 - Applying accounting assumptions and principles...Ch. 1 - Using the accounting equation Kenmore Handyman...Ch. 1 - Using the accounting equation Joshs Overhead Doors...Ch. 1 - Identifying accounts Consider the following...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Identifying accounts on the financial statements...Ch. 1 - Prob. 1.12SECh. 1 - Use the following injo17nation to answer Short...Ch. 1 - Prob. 1.14SECh. 1 - Prob. 1.15SECh. 1 - Calculating Return on Assets (ROA) Refined Water...Ch. 1 - Prob. 1.17ECh. 1 - Prob. 1.18ECh. 1 - Prob. 1.19ECh. 1 - Using the accounting equation Compute the missing...Ch. 1 - Using the accounting equation Green City Builders...Ch. 1 - Prob. 1.22ECh. 1 - Using the accounting equation During 2016,...Ch. 1 - Using the accounting equation The records of...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Prob. 1.28ECh. 1 - Using the accounting equation to analyze business...Ch. 1 - Preparing the financial statements Estella Osage...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Preparing the statement of cash flows For each...Ch. 1 - Preparing the statement of cash flows Bean Town...Ch. 1 - Calculating return on assets (ROA) Alec Appliance...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Preparing financial statements Presented here are...Ch. 1 - Preparing financial statements Click a Pix...Ch. 1 - Preparing financial statements The bookkeeper of...Ch. 1 - Prob. 1.45APCh. 1 - Using the accounting equation for transaction...Ch. 1 - Prob. 1.47BPCh. 1 - Using the accounting equation for transaction...Ch. 1 - Prob. 1.49BPCh. 1 - Prob. 1.50BPCh. 1 - Preparing financial statements The bookkeeper of...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Lets examine a case using Gregs Tunes and Sals...Ch. 1 - The tobacco companies have paid billions because...Ch. 1 - Prob. 1.1CTFCCh. 1 - This and similar cases in later chapters focus on...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Consider the following financial data for Tom’s Music Stores: Statement of Financial Position as of December 31, 2012 Cash $ 71,500 Accounts payable $ 91,000 Accounts receivable 235,500 Notes payable 125,500 Inventories 289,000 Accruals 68,500 Total current assets $ 596,000 Total current liabilities $ 285,000 Long-term debt 368,000 Net fixed assets 590,500 Common equity 533,500 Total assets $ 1,186,500 Total liabilities & equity $ 1,186,500 Income Statement for the Year Ended December 31, 2012 Net sales $ 788,000 Cost of merchandise sold 505,500 Gross profit $ 282,500 Operating expenses 150,500 Earnings before interest and taxes (EBIT) $ 132,000 Interest expense 69,000 Earnings before taxes (EBT) $ 63,000 Federal and state income taxes (40 percent) 25,200 Net profit $ 37,800 Calculate Tom’s days sales…arrow_forwardJuroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.arrow_forwardFINANCIAL RATIOS Based on the financial statements, shown on pages 603604, for McDonald Carpeting Co. (income statement, statement of owners equity, and balance sheet), prepare the following financial ratios. All sales are credit sales. The balance of Accounts Receivable on January 1, 20--, was 6,800. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventoryarrow_forward
- FINANCIAL RATIOS Based on the financial statements for Jackson Enterprises (income statement, statement of owners equity, and balance sheet) shown on pages 596597, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was 21,600. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventoryarrow_forwardLast year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had the following balances: Refer to the information for Tobys on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.arrow_forwardThe general ledger of Pop's Fireworks includes the following account balances in 2021: Accounts Debit Credit Cash $ 22,800 Accounts Receivable 45,500 Allowance for Uncollectible Accounts $ 3,800 Supplies 9,100 Notes Receivable (8%, due in 2 years) 26,000 Land 93,000 Accounts Payable 13,900 Common Stock 138,000 Retained Earnings 30,700 Service Revenue 126,400 Salaries Expense 71,700 Utilities Expense 26,600 Supplies Expense 18,100 Totals $ 312,800 $ 312,800 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: June 3 Provide additional services on account for $15,000. All services on account include terms 2/10, n/30. June 8 Receive cash from customers within 10 days of the services being provided on account.…arrow_forward
- The general ledger of Pop's Fireworks includes the following account balances in 2021: Accounts Debit Credit Cash $ 22,800 Accounts Receivable 45,500 Allowance for Uncollectible Accounts $ 3,800 Supplies 9,100 Notes Receivable (8%, due in 2 years) 26,000 Land 93,000 Accounts Payable 13,900 Common Stock 138,000 Retained Earnings 30,700 Service Revenue 126,400 Salaries Expense 71,700 Utilities Expense 26,600 Supplies Expense 18,100 Totals $ 312,800 $ 312,800 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: June 3 Provide additional services on account for $15,000. All services on account include terms 2/10, n/30. June 8 Receive cash from customers within 10 days of the services being provided on account.…arrow_forwardThe general ledger of Pop's Fireworks includes the following account balances in 2021: Accounts Debit Credit Cash $ 22,800 Accounts Receivable 45,500 Allowance for Uncollectible Accounts $ 3,800 Supplies 9,100 Notes Receivable (8%, due in 2 years) 26,000 Land 93,000 Accounts Payable 13,900 Common Stock 138,000 Retained Earnings 30,700 Service Revenue 126,400 Salaries Expense 71,700 Utilities Expense 26,600 Supplies Expense 18,100 Totals $ 312,800 $ 312,800 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: June 3 Provide additional services on account for $15,000. All services on account include terms 2/10, n/30. June 8 Receive cash from customers within 10 days of the services being provided on account.…arrow_forwardThe Butler-Huron Company’s balance sheet and income statement for last year are as follows:Balance Sheet (in Millions of Dollars) Assets Liabilities and Equity Cash and marketable securities $142 Accounts payable*** $808Accounts receivable* 941 Accrued liabilities Inventories** 1,607 (salaries and benefits) 508Other current assets 35 Other current liabilities 534Total current assets $2,725 Total current liabilities $1,850Plant and equipment (net) 3,029 Long-term debt and other Other assets 5,796 liabilities 2,228Total assets $5,796…arrow_forward
- Ratio AnalysisPresented below are summary financial data from Pompeo’s annual report: Amounts in millions Balance Sheet Cash and Cash Equivalents $1,865 Marketable Securities 19,100 Accounts Receivable (net) 9,367 Total Current Assets 39,088 Total Assets 123,078 Current Liabilities 39,255 Long-Term Debt 7,279 Shareholders’ Equity 68,278 Income Statement Interest Expense 375 Net Income Before Taxes 14,007 Calculate the following ratios:(Round to 2 decimal points) a. Times-interest-earned ratio Answer b. Quick ratio Answer c. Current ratio Answer PreviousSave AnswersNextarrow_forwardThe following data were provided by the accountants of the Home Office and Branch for the year ended December 31, 2016: Home Office Book Branch Book Net sales to outside customer 1,000,000 800,000 300,000 140,000 250,000 Beginning Inventory Net purchases from outside supplier Shipment to branch Shipment from Home Office Ending Inventory Operating expenses 800,000 400,000 500,000 100,000 200,000 200,000 100,000 The current corporate income tax rate is 30%. It is the policy of the company to use specific identification for inventory. For the year ended December 31, 2015, the Home Office bills its branch with a gross profit rate of 40% based on cost. Half of the beginning inventory of the branch was acquired from outside suppliers. The ending inventory of the branch is broken down as follows: 60% from outside suppliers 26% from 2016 shipment from home office 14% from 2015 shipment from home office 13. What is the net income of the branch in its books for the year end December 31, 2016? а.…arrow_forwardRatio Analysis Presented below are summary financial data from Pompeo’s annual report: Amounts in millions Balance sheet Cash and cash equivalents $2,712 Marketable securities 27,128 Accounts receivable (net) 14,051 Total current assets 58,632 Total assets 184,617 Current liabilities 66,017 Long-term debt 12,738 Shareholders’ equity 119,487 Income Statement Interest expense 539 Net income before taxes 24,512 Calculate the following ratios: (round to two decimal places) a. Times-interest-earned ratio b. Quick ratio c. Current ratioarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,College Accounting, Chapters 1-27 (New in Account...AccountingISBN:9781305666160Author:James A. Heintz, Robert W. ParryPublisher:Cengage Learning
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
College Accounting, Chapters 1-27 (New in Account...
Accounting
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License